Microsoft recently announced its plan to lay off thousands of employees in the coming weeks as part of its ongoing efforts to streamline operations while advancing its costly artificial intelligence strategy.
According to sources familiar with the matter, the layoffs will affect thousands of positions across departments such as sales, and are set to begin at the start of Microsoft’s new fiscal year in July. The exact number of job cuts has not been finalized yet.
Bloomberg previously reported the company’s plan to lay off employees in the summer.
Earlier in May, the tech giant disclosed it would reduce its workforce by nearly 3%, approximately 6,000 employees. This move is one of several measures taken by the company to control costs amid heavy investments in artificial intelligence. It may also be Microsoft’s largest round of layoffs since cutting 10,000 jobs in 2023, which impacted nearly all levels and regions.
Microsoft’s Chief Financial Officer, Amy Hood, stated in April to investors and analysts, “We will continue to focus on building high-performing teams and increasing agility by reducing layers.”
In 2024, Microsoft also completed the acquisition of Activision Blizzard and downsized its video game division. In January 2023, Microsoft cut 10,000 jobs, possibly as a result of the company’s rapid expansion during the pandemic, like many other companies.
In recent years, Microsoft has heavily manufactured and sold artificial intelligence tools and made significant investments in data centers. As of the previous fiscal year ending in June 2024, Microsoft had around 228,000 employees, with approximately 45,000 in sales roles.
Currently, large companies across various industries in the United States are devising plans to consolidate positions, streamline personnel, in pursuit of achieving more goals, and relying on technology to accomplish more tasks.
(This article references reporting from The Wall Street Journal)